Whale Investors Keep Buying ETH Amid Price Decline: A Strategic Bet on the Bottom
The cryptocurrency market is under downward pressure; even Ethereum (ETH) cannot escape the broader market trend. Not only is the price in decline, but the ETH/BTC exchange rate recently dipped to a worrisome 0.02 mark.
But a group of major market players—known as the “7 Siblings”—has not only continued to invest in Ethereum but has also significantly ramped up its buying of the digital asset. These market whales see current prices as an opportunity to load up on the second-largest cryptocurrency by market cap, with the belief that prices will eventually rebound.
Whales Continue to Build Ethereum Position Despite Market Downturn
Over the past 10 hours, 7 Siblings spent a colossal $42.66 million in USDC buying 25,102 ETH at an average price of $1,700. This fresh pile of Ethereum joins an already immense position, taking their total up to more than 660,000 ETH—an amount currently valued at a staggering $1.037 billion. Seen in the light of recent price action, the timing of these purchases seems somewhat dubious. Despite this apparent vote of confidence, ETH is showing no immediate signs of reversing its price decline.
Deciding to keep on buying even as ETH’s price persists in dropping underscores a steadfastness of belief that these current price points are somehow a bottom as far as Ethereum’s potential goes. It seems our 7 Siblings are making a bet—an apparently unfounded one, at this point—that the value of Ethereum will eventually swing back in their favor. And so, they buying, buying, buying.
虽然 ETH 价格持续下跌，ETH/BTC 汇率已经来到 0.02 关口，但是 ETH 也从不缺少 "抄底" 的巨鲸：
1⃣一直在购买 ETH 的 7 Siblings 在过去 10 小时里继续买入 ETH，一共花费 $4266 万 USDC 购买了 25,102 枚 ETH，均价 $1,700。
他/他们持有的 ETH 数量超过 66 万枚 ($10.37 亿)。这些 ETH… pic.twitter.com/G6khUFrTxI— 余烬 (@EmberCN) April 7, 2025
Leveraged Positions: A Risky Bet with Significant Upside Potential
Nevertheless, this situation becomes even more captivating when considering the fact that these 7 Siblings are acquiring Ethereum not only with available cash but also with some good old-fashioned leverage. To secure their substantial buying, this elite group of Ethereum aficionados has gone out and borrowed a not-too-paltry sum of $412 million from a number of varied lending agreements, all of which underpin the group’s purchase with Ethereum mortgages.
Using borrowed funds to buy more ETH is a risky choice. If the price of Ethereum does not rise much beyond what it was at the time of writing—about $1,700—the 7 Siblings could lose it all and then some. And even if they were to achieve the profit target of 20% that they have set for themselves in this strategy (which would bring Ethereum’s price to about 2,040), that’s not much in terms a scale of 10,000 ETH and more.
Nonetheless, if the market keeps declining or does not bounce back as expected, the risks tied to leveraged positions could set off liquidations. The group’s loan positions are deemed solid at the moment, but the prices at which those loans would be liquidated are well under $1,100. If the price of Ethereum drops below that threshold, then we could see a wave of forced liquidations. The group could sustain a significant loss of holdings as a result.
The Bigger Picture: Whale Behavior and Market Sentiment
What the 7 Siblings do is part of a bigger picture showing that when the markets go down, big whales, institutions, and now even the 7 Siblings, keep on buying. Why? Because they see long-term value in Ethereum and other cryptocurrencies. These big players are not doing anything special; they are just using a well-known tactic to try to profit in the future.
Regardless of the lessening price of Ethereum and its reduced performance in comparison to Bitcoin, these multinational corporations are still confident that the fundamental forces driving Ethereum’s adoption and growth are just going to lead to a much higher price for Ethereum in the not-too-distant future. Key factors that are seen as pushing Ethereum’s long-term value higher are:
Crowd 1 thinks:
DeFi-sector-dominating performance
Ethereum’s transition to “Ethereum 2.0”
Institutional interest in blockchain tech.
Despite the uncertainty for Ethereum in the short term, many large investors hold the belief that the current price levels are a temporary decline, not a dip that’s here to stay. These investors think it’s a wait-and-see market at the moment and are more focused on accumulating Ethereum at cheap prices. For them, it’s the age-old story of being patient and counting on a recovery to make their payoffs.
Conclusion: A High-Risk, High-Reward Strategy
The ongoing purchase of Ethereum by the 7 Siblings—particularly at a moment when the market is under pressure and heading downward—is a shining example of just how high-risk and high-reward the cryptocurrency market can be. Their investment strategy is not just straightforward buying, though. They are opening positions in Ethereum, and they are doing so using leverage (i.e., borrowing money to invest). This adds an extra sheen of potential profit to their already shiny investment, for two reasons.
In the realm of cryptocurrencies, barometers of future market trends are often seen in whales like the 7 Siblings. They steer the ship of Ethereum with more than $1 billion in assets under their control. Watching closely as these potential market movers pay off in the long term or result in heavy losses will not only satisfy our curiosity about the broader crypto community but also add another chapter to the evolving story of risk and reward in the crypto market.
Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.
